Explain the difference between bank of the first level and the second level

In the age of online transactions, banks are working hard to provide their clients with the best security protocol available. This extends beyond the simple username/password and security questions you see on your bank's homepage. Banks also employ firewall software as a first line of defense against unauthorized entry, and they are continually updating this software to stay ahead of viruses and identity thieves. In addition to these security measures, banks also implement a certain level of encryption over all of your digital files and online transactions. This essentially encodes all of your information in a way that prevents hackers from easily accessing or deciphering your data. The standard level of encryption for banks has been identified as 256-bit AES or Advanced Encryption Standard. When it comes to choosing a company to help you keep track of your expenses, should the 128-bit encryption be a dealbreaker? Definitely not! But if it's really that important to you, you can rest assured that more and more companies are now adopting the 256-bit key to drive their encryption processes. And most of the businesses still running 128-bit run regular security scans over their software. Remember, when it comes to AES encryption, it's not a matter "good versus bad," but more a matter of "excellence versus excellence (plus added peace of mind)."

What is government budget and its structure?

A government budget is an annual financial statement presenting the government's proposed revenues and spending for a financial year that is often passed by the legislature, approved by the chief executive or president and presented by the Finance Minister to the nation. The budget is also known as the Annual Financial Statement of the country. This document estimates the anticipated government revenues and government expenditures for the ensuing (current) financial year.For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for municipal and county revenues, while sales tax and/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues.

What is government budget and list the government expenditures?

Government spending or expenditureincludes all government consumption, investment, and transfer payments.In national income accounting the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation). These two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product.

Government spending can be financed by government borrowing, seigniorage, or taxes. Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle.

List the indirect taxes and why are they called indirect taxes?

Indirect taxes are the charges that are levied on goods and services. Some of the significant indirect taxes include Value Added Tax, Central Sales Tax, Central Excise Duty, Customs Duty, stamp duties and expenditure tax. Unlike Direct Taxes, Indirect Taxes are not levied on individuals, but on goods and services. Customers indirectly pay this tax in the form of higher prices.

For example, it can be said that while purchasing goods from a retail shop, the retail sales tax is actually paid by the customers. The retailer eventually passes this tax to the respective authority. The indirect tax, actually raises the price of a good and the customers purchase by paying more for that product.

The term indirect tax can be defined from different views. In the colloquial sense, an indirect tax is the charge that is collected by intermediary (like retail store) from the individual who holds the actual economic burden of the tax (like customer). The intermediary files a tax return and eventually passes to the government. The indirect tax can be alternatively defined as the charge that is paid by one individual at the beginning, but the burden of which will be passed over to some other individual, who eventually holds the burden. In a colloquial sense, one example of indirect tax includes VAT (Value Added Tax).

63List the direct taxes and why are they called direct taxes? Any person on whom the tax is imposed, if he himself pays the tax, it is called direct tax

MeritsofDirectTax

1. Direct taxes are based on the principle of ability to pay and so they help to distribute tax burden equally.

2. As the tax is imposed on each individual, for example, based on his income, he is certain about the amount of tax payable by him. Hence, thedirecttaxsatisfiesthecanonofcertainty.

3. Direct taxes are also highly flexible. The revenue from them can be increased or decreased depending upon the need of the government. For example, the government can simply raise the rate of tax to get more revenue and bring down the tax rate to reduce the revenue.

4. The tax paying people are more interested in the ways in which the tax revenue is spent by the government. They feel proud of participating in the public projects by paying tax.